Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

Note 8.   LEASES

The Company leases its facilities from 1895 Management, Ltd., a New York corporation controlled by an entity affiliated with a director of the Company, under non-cancellable operating leases. Following entry into a lease extension agreement in August 2020, the lease agreement requires monthly rental payments of $14,511 through October 31, 2022. The Company is responsible for all maintenance, utilities, insurance and taxes related to the facility. The Company has elected the practical expedient on not separating lease components from non-lease components.

The leases do not provide an implicit rate so in determining the present value of lease payments, the Company utilized its incremental borrowing rate for the applicable lease, which was 7.0%. The Company recognizes lease expense on a straight-line basis over the remaining lease term.

As of June 30, 2022, the future minimum payments for the operating leases total $58,044 in 2022, less imputed interest of $836, for an operating lease liability of $57,208 as of June 30, 2022. As of June 30, 2021, the future minimum payments for the operating leases total $232,180, less imputed interest of $11,120, for an operating lease liability of $221,060 as of June 30, 2022.  For each of the three and six months ended June 30, 2022 and 2021, cash paid for amounts included in the measurement of lease liabilities was $43,500 and $87,000.

Lease expense incurred under the operating lease for each of the three and six months ended June 30, 2022 and 2021 was $43,500 and $87,000 and is a component of general and administrative expense.